Help Save & E Oil from a specific type of marine microalgae can be converted int

Question

Help Save & E Oil from a specific type of marine microalgae can be converted into biodiesel that may serve as an alternate transportable fuel for automobiles and trucks. If lined ponds are used to grow the algae, the construction cost is $10 million and the M&O; cost is at $2. but less contamination will render the M& period, which system is better-ponds or tubes? Use a present worth analysis. estimated e, the initial cost will be higher at $19 million, 0 cost lower at $0.4 million per year. At an interest rate of t1% per year and a 5-year project 2 million per year Alternatively, if long plastic tubes are used for growing the alga The present worth of lined ponds is $and that of plastic tubes is $ Click to select) are used to grow algae. NoA

Explanation / Answer

Alternative-Lined Ponds Present value of cash outflows of M & O cost for 5 years ($ 2.2 million * Annuity factor for 5 years at 11% i.e.3.6959) 8130980 Add: Initial investment 10,000,000 Present worth of cash outlows -18,130,980 Alternative-plastic Tubes Present value of cash outflows of M & O cost for 5 years ($ 0.4 million * Annuity factor for 5 years at 11% i.e.3.6959) 1478360 Add: Initial investment 19,000,000 Present worth of cash outlows -20478360 Hence, as Alterntaive Lined ponds sahll be accpeted. The present worth of lined ponds is $(18130,980) and that of plastic tubes is $(20478360)

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.